Oana Boteanu Staff asked 7 years ago
This indicator is for measuring the % of Employees that had a positive result (high score) in Job Satisfaction organisational surveys (usually taken annually). This KPI is similar to the Employee Engagement % KPI, and it looks at
Job Satisfaction as a factor that triggers employee motivation.
For instance, in management terms, and employee that is satisfied with the workplace, with wage and benefits, work objectives, line management practices etc., and scores high in Job Satisfaction surveys, is considered to be highly motivated.
Highly motivated employees are likely to perform highly and bring value to the organisation. This KPI can be used with the % of Employees that Ranked High in Performance Reviews, and the Ratio between Low and High Performance Employees KPI, to measure employee motivation. Also, comparing all these different KPIs can help the management team identify what factors are likely to trigger employee motivation.
Although an intangible asset, employee motivation can play a big role in the cost profit ratio of a company, hence the aim is to maximise this KPI.
Just as the Employee Engagement % KPI, the Job Satisfaction % is usually calculated by surveys, but in case the exact % is not given, the following formula may be used:
Formula :
- Total number of employees with positive* (high) job satisfaction results/ total number of employees taking the survey x 100 *where positive (high) result is a set figure, for instance, 70+%
KPI Units: %
KPI Time Frame: update annually
A company is calculating the % of Job Satisfaction amongst its workforce, as part of their annual employee survey.
The job satisfaction survey measures any employee that scored an over 70% satisfaction as a highly satisfied employee, and anything below that as a low score of job satisfaction.
The company has a total of 400 employees, were 180 scored high (over 70%) and 220 scored low.
The Job Satisfaction % is averaged as:
180/400 x 100 = 45 %
Therefore, 45% of the workforce is satisfied with the job.
Research shows that job satisfaction has a great impact on employee performance.
